Average offer prices for ex-China and ex-ASEAN wire rod have remained stable over past weeks, but buyers in Southeast Asia have been asking for discounts constantly and the workable levels are much lower than the official offer prices from mills.
Offers for ex-China wire rod from second-tier mills have been heard at $470-485/mt FOB, remaining stable on average compared to February 6, while reference deal prices have been heard at $465-475/mt, FOB, also moving sideways. Some traders have been ready to give $460/mt FOB, but sources said that this level is mainly for non-VAT business.
During the given period, wire rod prices in the Chinese domestic market have seen declines amid decreasing rebar futures prices. Cautious sentiments have prevailed among market players. Market players’ sentiments have been negatively affected by the increasing uncertainty around the market outlook due to the tariff threats from the US and India. It is thought that wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $475/mt FOB early this week, for shipment in March, but the latest offers for April announced yesterday, February 12, were at $470/mt FOB, showing stability for three weeks. Offer prices of ex-Malaysia wire rod have been heard at $490-495/mt FOB.
In Southeast Asia’s import wire rod market, the tradable level has been assessed at $470-475/mt CFR and “this level is possible only if the trader is going short or working with non-VAT,” a Singapore-based trader said.
As of February 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,265/mt ($455/mt), decreasing by RMB 92/mt ($12.8/mt) or 2.7 percent since February 6, while down 0.46 percent compared to the previous trading day, February 12.
$1 = RMB 7.1719